Reports: HP to combine printer, PC divisions

Mar 20, 2012

(AP) -- Hewlett-Packard Co. is combining its printing and PC units to save money, according to published reports.

The technology blog AllThingsD first reported the restructuring plan Tuesday citing anonymous sources. HP would not comment.

The move comes at a time when sales of printers and ink, once HP's lifeblood, are falling amid declining demand and growing competition. HP is the world's No. 1 maker of personal computers. But PC sales are hurting, too, as people turn their attention to tablets and smartphones.

Aside from external factors, Hewlett-Packard also faces internal problems, something CEO Meg Whitman acknowledged in a February conference call.

"We didn't make the investments we should have during the past few years to stay ahead of customer expectations and market trends," she told analysts after HP reported lower earnings and revenue. "As a result, we see eroding revenue and profits today."

Whitman became HP's CEO in September, replacing Leo Apotheker, who served just 11 months before he was ousted. Whitman is the company's third chief executive in less than three years.

Apotheker had announced that HP was looking to sell or spin off its PC division, but under Whitman's guidance the company said it will keep the unit.

HP said last month that it plans to spend several years turning itself around. The expected combination of its PCs and printer units is part of that plan, and will likely lead to job cuts and cost savings, according to reports. Together, the two units made up about half of HP's $30 billion revenue in the first quarter.

Explore further: Google to face charges if it fails to improve settlement: EU

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Hewlett-Packard begins Palm unit layoffs

Sep 20, 2011

Hewlett-Packard said Tuesday that it has begun laying off workers as part of its move to give up on the webOS mobile operating system it got when it bought Palm.

Allure of iPad, other tablets hurting PC sales

Apr 14, 2011

Last year, the popularity of Apple Inc.'s iPad hurt PC sales. This year, that trend is continuing, as new data from two market research firms indicate PC shipments declined in the first three months of 2011.

HP recalls nearly 80,000 laptop batteries in China

Jun 02, 2011

China's quality watchdog said Thursday that US computer maker Hewlett-Packard plans to recall about 78,740 laptop batteries in China for some HP and Compaq laptops as they pose a fire hazard.

Recommended for you

Daily that challenged LA Times shuts down

10 hours ago

The Los Angeles Register, a newspaper launched earlier this year to challenge the region's dominant Los Angeles Times, announced Tuesday it was shutting down.

User comments : 0